Chapman Compary, a major retailer of bicycles and accossories, operates severatstores and is a pubticly traded company, The comparative balance stieet and incomestatement for Chapman as of May 31, 2025, are as follows. The compary is preparing its statement of cash flown. Long-term debt Bonds payable Total liabilities 267,25070,000312,000100,000 Stockholders' equity Commonstock, \$10 par \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{\begin{tabular}{l} Chapman Company \\ Income Statement \\ For the Year Ended May 31, 2025 \end{tabular}} \\ \hline Sales revenue & $1,255,250 \\ \hline Cost of goods sold & 722,000 \\ \hline Gross profit & 533,250 \\ \hline Expenses & \\ \hline Salaries and wages expense & 252,100 \\ \hline Interest expense & 75,000 \\ \hline Depreciation expense & 25,000 \\ \hline Other expenses & 8,150 \\ \hline Total expenses & 360,250 \\ \hline Operating income & 173,000 \\ \hline Income tax expense & 43,000 \\ \hline Net income & $130,000 \\ \hline \end{tabular} The following is additional information concerning Chapman's transactions during the year ended May 31.2025. 1. All sales during the year were made on account. 2. All merchandise was purchased on account, comprising the total accounts payable account. 3. Plant assets costing $98,000 were purchased by paying $28,000 in cash and issuing 7,000 shares of stock. 4. The "other expenses" are related to prepaid items. 5. All income taxes incurred during the year were paid during the year, 6. In order to supplement its cash, Chapman issued 2,000 shares of common stock at par value, 7. Cash dividends of $105,000 were declared and paid at the end of the fiscal year. Compare and contrast the direct inethod and the indirect method for reporting cash flows from operating activities